CRH 1H16 earnings to reach US$1.1bn driven by US and Asian markets

CRH 1H16 earnings to reach US$1.1bn driven by US and Asian markets
Published: 27 April 2016

In its earnings statement for 1Q2016, CRH predicts that EBITDA will rise to EUR1bn (US$1.1bn) driven by growth in the United States and the Philippines. This is around five per cent up on last year, with the final figure to be announced when 1H2016 results are published on 25 August.

Sales for 1Q2016 itself are up nine per cent YoY, with US sales up by 22 per cent and Asian sales up 12 per cent. European markets were reported to be flat. 

Some EUR85m (US$96m) was spent on acquisitions and investment during the first quarter, while EUR78m (US$88m) was raised from divestments during the period.  

Heavy building materials volumes in Great Britain were overall stable, with some decline in aggregates volumes being offset by increased demand for cement. Romania showed a particulary good volume growth and Finnish cement volumes increased. 

Dutch and Swiss volumes also improved, though Swiss prices were under pressure, largely reflecting the strength of the Swiss currency. French volumes were slightly ahead while Polish volumes were stable in a very competitive pricing environment. Lightside materials benefited from increased demand in Britain, Germany, the Benelux and France, while in distribution there was a clear improvement in Benelux while elsewhere volumes were broadly stable in spite of competitive markets in Switzerland and Austria. 

The first quarter North America turnover from the 44 US states and nine Canadian provinces where CRH is active rose by 22 per cent over the pro-forma previous year number. US aggregates and ready-mixed concrete volumes increased by 25 per cent and asphalt volumes were well ahead, while Canada was mixed but overall stable.

North American heavy materials turnover increased by 27 per cent, helped by a mild winter. In building products, turnover increased by 22 per cent with sales in the architectural products showing a 35 per cent advance and the pre-cast business growing by five per cent. In distribution, the turnover was ahead by 17% as a favourable early season boosted RMI activity in particular. 

In Asia, demand in the Philippines rose supported by strong foreign direct investment in the business process outsourcing sector, overseas workers' remittances and increasing government infrastructure spending.